A3 Thinking

A3 thinking 1s a structured
WHAT approach for problem solving &
continuous improvement.

Adopted by Lean organizations around

the world and developed as part of the
Toyota Production System (TPS).

Used in problem Used as a storytell ing

solving, planning and tool to communicate
decision making. improvement projects.

11 in - 27.94 cm

The name A3 is
derived from the
- 00
""".
E
V
No special software is needed
to use the A3 approach. You
international A3 M
'Sf
just need an A3 sheet, a
paper size. I
C
pencil and an eraser as you
r--- will need to erase and rewrite
~

several t imes.

How? The A3 process usually contains multiple stages

•
A3 SEVEN STAGES MODEL A3 FOUR STAGES MODEL

!.Background Countermeasures 1. Problem

3. Action Plan
Defi nition
2.Current situation
Implementation
3.Ta rget plan
2. Cause 4. Res ults &
4.Analysis Follow-up Analysis Follow-up

The exact number of stages is not what matters but rather having a
structured approach for problem-solving.

A3 thinking is built around the PDCA

philosophy and considered to be its
► Ensure using visuals & graphs in the
A3 report as they are more effective
practical form than text in communicating ideas

T
Detailed docume·nts are usually attached to the A3 report, so you don't get
overwhelmed with the detai ls when viewing the A3 report

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 AFFINITY DIAGRAM
A grouping method for classifying
WHAT items together into meaningfu l
categories.

-ntr - '
During brainstorming and
problem-solving sessions ) WHEN
touse ?
To organize the voice of the
customer and research data
/ •

Helps organize information

and ideas, see how they are WHY
Benefits
connected.

An affinity exercise tends to be more

effective when it is conducted by a team of
HOW subject matter experts, and when it is led by
a fac il i. tator who is fam iliarwiththe subject.

1
With your team,
2
Give your team
3 4
Collect the sticky Lead the
present the topic sticky-notes then notes and stick participants to
or define the ask them to write them randomly group the ideas
problem clearly. one idea per on the wall. and label the
sticky-note. categories.

There should be no You may add arrows

• evaluation of ideas until • between items and
I the final affinity diagram
is complete.
I groups to show
relationships.

✓EXAMPLE The following affinity diagram identifies how

to successfully implement and sustain change.

E]
Paradigms Change
resistance
A vis ion to
change Se·nseof
urgency
Convey
change
vis ion
Encourage
personal
devel op

A b laming
cu lture
ILead~~ip I A change
Training at
a ll levels
agent
Som e
It may take A change
will never Quick Empower
long to ptan
change wins
change ·ment

Change Obstacles Planning Implementation

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 BOX PLOT
A graphical representation for the
WHAT frequency of numeric data values.

WHEN WHERE
To explore, present Widely used in process
and compare multiple improvement, scientific
data sets in an easy research, economics,
and understandable and in social and
manner. human sciences.

-----------------~--------------------------
... Basic Structure . ..
A box plot i s made up of a box and two whiskers

* Outlier

Whisker
Upper quartile
Box ----..

•
Median

Lower quartile
Mean

Minimum value

The data is plotted un such away that the bottom 25%

and the top 25% of the data points are represented
by the two whiskers, whereas the middle 50% of the
data points are represented by the box.

5.0 5.2 5.4 5.6 5.8 6.0 6.2

A
B
'A' appears to have higher median and highe r
variability than 'B'.

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 FISHBONE DIAGRAM
A tool t hat allows to establish and
WHAT present t he cause-and-effect in an
easy and understandable format.

Capture,categorize
and organize
people's knowledge
& In product and
process design to
prevent future
of a process. problems and risks.
WHEN
How? Three Main Steps

•
0 Clearlydefinethe
effect which may
be desirable or
undesirable.
• Brainstorm and
log all possible
causes under the
proper categories.

r-- -
•
1_______ Cause Category

~asic Structur~
Combining the
fishbone with the Subcause ~ - - ----'~~ - -
Effect
5 whys allows to
identify the hierarchy Potential _ _ _ _ _,._---'~-,,
of causes including cause ~ - ---'-- -
possible root causes.

The 6 Ms Approach Other Approaches

Used to categorize and label the You can use the process
branches of the fishbone diagram steps in a process map as
the basis for categorization.
Man >-- --t. Material
You can also use the affinity
Method >-- C:, tJ\ S ---,, Measurement □□ groups in an affinity diagram
Mach ine ~ - Environment □□ to categorize the branches.

✓Example
Using water
from the tap

Beans roasted
some time ago
Coffee not
tasting
Long
Cleaning SOP ""
roasting
good
not followed ~
period
Unclean coffeemaker ,,__ _ __ .l!f!.__
Over roasting
Machine

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 5S
A Japanese approach for organizing
·WHAT and maintaining a disciplined and
productive workplace.

Developed by Toyota and

LEAN represents an important component
o f the Lean production system.

Considered a prerequisite for driving other LEAN techniques such as TPM, Flow and Ka izen

SORT
Going through all the
•
items in the workplace
and keeping only what
is needed.
• The
SET IN ORDER
practice of

SHINE
Aims of creating clea n
• ~- arranging the remaining
ite ms (where, how, and
how much).

and neat workplace

without rubbish, dirt i'I.
or dust.
• The
STANDARDIZE
practice of ensuring

SUSTAIN •
a. the consistency of
implementing the first
three 5S practices.
Aims of ensuring all
know the benefits and
be involved in the 5S
program.
@
- WHY?
Minimizes errors and mistal<es.
I \ Enhances safety and efficiency.
·-· . . .. ' " '
Promotes workplace ownershi1t?Dfi.m.9Jiy.9Ji9P:J

Improves image & builds customer confidence.

0 Review the current situation & take 'before' photos.

e Brainstorm to identify improvement opportunities.

HOW e Develop & implement a plan to improve the area.

0 Audit the area and take the 'after' photos.

BEFORE AFTER
e Share and publishthe results.

0 Implement a controlsto sustainthe improvement.

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 SWhys
One of t he common techniques
WHAT for problem - solving and root
cause analysis.

Used in everyday business situations to

identify the root cause of a problem.

Often used in Used in Lean to

the Analysis identify and
phase of Six eli minate
Sigma DMAIC wasteful
methodology activities

WHY

Gives more depth Engages operators

to the problem- in the process
solving process improvement efforts
' --

5 Whys can be used individuall y or as

part of a cause-and-effect analysis. It
HOW can be done in a team setting or on
an individual basis.

1 2 3 4 5
With your team, Ask "Why does Ask Why again Keep asking Discuss and
write a clear this happen?". for the resulted Why until the agree on the
and specific Write the answer and team identify actions that
problem answer below write the the root cause will solve the
statement. the problem. answer below. of the problem. problem.

EXAMPLE
I
PROBLEM I have just got caught speeding by a speed camera
Assumed
WHY? I drove fast because I was late for work . . cause

WHY? Because I got up late

Because my alarm clock didn't work Possible

WHY?
causes
WHY? Because the batte ries were flat

Because I forgot to replace them Root

WHY? . . cause

You may find that you need to ask Why more

or less times depending on the situation.

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 FLOWCHARTING
A graphical tool that illustrates the
WHAT flow of a business process and the
relationships between its activities.

To understand the sequence of activities

To identify and analyze problem areas

To document how to do a particular job

To provide a view of how a process should be )

► Provides clarity to a process WHY?

that appears disordered or
complicated. ► Useful for revealing areas of
•
inefficiency for later problem-
solving effort.
► Helps communicating any
changes that happen on the
process. ► Helps explaining the process
to suppliers, new employees
and subcontractors.

..,A I' I /\. I\ I\ A A I' /\.. I' A I\. /\ '\ A I

COMMON
Drawn with shapes of various kinds to represent different types of activities.
SHAPES Other shapes can be used based on the situation.

□Activity
0 0
Decision Start/ end
,
Flow line

TYPES
Swimlane Flowchart Opportunity Flowchart
Displays the activities to Provides a way to analyze
accomplish a process that is and study processes by
cross-functional (focuses on highlighting the steps that
what& who). add no value.

'
VA i' ) NVA

◊
VexAMPLE
Make Package

NO

Scrap
r
Rework

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 FORCE FIELD ANALYSIS
A decision making technique
WHAT used to analyze the pros and
cons of any decision.

It looks at the forces that are

V either driving or blocking
movement t oward a goal.

WHEN DECISION
Used when PROS
decision making Helping forces
CONS
isn't going wel-1 are listed on Hindering forces
the left side
are listed on the
right side

Better decisions are made

up by weighing up the
pros and cons to determine
the winning force!

WHY
By analyzing both the helping and the
hindering forces, decision makers and change
agent s can make more intelligent business
decisions .

•
Write the decision in a box
0
-
at the top middle of a paper
List all helping & hindering forces A

A -
(left & right side respectively)
Allocate a numerical score to each
V

V
-
force indicating its significance
Add up the scores of both lists to
find out the overall winning force 0 HOW
I

E Implementin g a conte nt
X management solution
A
4. 3
M Helps in ach ieving change - Ill Likely to faceresistance
p
3 4
L Promotes docu ment sharing
~

- Ill The cost is rela tively high

E 3. 2
Supports proce ss automation - Ill Lack of techni cal expert ise

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 FOUR FIELD MATRIX
A two-dimensional chart that consists
WHAT of four equal -sized quadrants.

Each quadrant describes 1 2 An effective model for

different aspects of planning, organizing
information 3 4 and making decisions

Helps you organize your ideas or information

in a logical manner that makes sense.
w1,1v ?
• Complex problems can be Yaxls
broken down into easier to
hand le groups by considering
the two most important
characteristics (represented
---+-- X axis

on the X and Yaxes).

Strengths Weaknesses
WHERE
SWOT Matrix
To evaluate the
strategic position
of an organization
Opportunities Threats

+
, - - -- -- - ,
Do First
...-----
Urgency -
Do Soon
Importance Urgency Matrix ;
To prioritizework& personal ~ !=====~= = = = = =
activities based on the Eisenhower g_
method ~
Push Back Avoid

- Interest +
Understand Engage Power Interest Matrix
+ To classiifystakeholders according
~
0
l=========i ~!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~ to the power they hold and how
c..
' li kely they are to be interested in
Monitor Consider a project

· Effort +
. -- - ---,
Quick Wins Major Projects
Project Prioritization Matrix +
To select the projects that w ill have i:::
~\:=====-=P=====~
the greatest impact with the least g
amount of money, time or effort
Postpone Don't Do

C
J0
Short Time-Span Long Time-Span
C
~
JUST-DO PMP
~
~
,.,• Project Methodology Matrix
C
To select the methodology for
J0
~
C problem solving and process
C
::,
~
improvement
~ KAIZEN SIXSIGMA
u•

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 GAP ANALYSIS
Gap analysis compa res two different
WHAT states of something, t he cu rrent state
and the desired state.

Brings understand ing to the

problems faced in order to WHY
select the actions of greatest }
.
impact.
Benefits
~
j

WHEN?
► To identify the areas
where a business is
• ►
To address the
unsatisfactory
► When comparing an
existing process to a
performing below performance of a process that is
standards. process. performed elsewhere.

Current Target
Condition Condition
1111 Ill
What is currently GAP What should be
happening happening
ll rr1 111r ll n1rnr I rll fl IT I rn1 I ITI 111111I IT Tl 11 f11TI]'' ' 'f' rn rnr11111 n 11 11 rn]

It is common to use performance indicators when compa ring

t he two states at any point during the gap analysis process.

HOW
1 2 3 4 5
Select a specific Understand Identify the gap Agree on the
Identify the
problem area the current desired state.
between the two steps to take to
state. states. close the gap.
THE PROBLEM
- - CURRENT STATE DESIRED STATE• THE GAP
-
Actions
The last audit External audit Exte rnal audit More than 1. Maintain all
results were score is below score should 30%. records
negative in standards be above 90%. 2. Comply with
three areas. (<60%). legal needs.
'
EXAMPLE

Various tools and rnodels can be applied to identify ~

the gaps, such as SWOT analysis and fishbone analysis "'

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 HISTOGRAM
A graphical representation for the
WHAT frequency of continuous data
values.

To explore and present the data in an

easy and understandable way.

To determine the underlying

WHEN probability distribution of the data.

WHY ?
► Identify whether you
•
► ► Verify visually if an
Identify whether
can apply certain variability is within improvement has been
statistical tests for specification limits and achieved after a process
further analysis. the process is capable. improvement initiative.

A way to shape sample data to make predictions and draw conclusions about an entire population

Basic Structure
>.
u
C
a.,
::J
*
Center
0-
~
u..
Outliers The bars should be
Spread adjacent with no
gaps between them.

The result in this example can Normal

be summarized as fo llows: curve
,, The distribution looks
symmetric around the
mean (5.46 cm) and
appears to fit the
Normal distribution ,,

Data values ---➔ 5 .0 5.2 5.4 5.6 5.8 6.0

Histograms are ideal to represent moderate to

large amount of data. In practice, a sample size
of at least 30 data values wou ld be sufficient.

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 How-How Diagram
-----
A simple method that 1s used to
WHAT generate multiple ideas to solve a
particular problem.

In problem solving when seeking a

WHEN practical solution to solve a problem.

WHY
Provides an effective structure for
organizing possible idleas and
solution options all in one place.

HOW

The how-how
Ill
diagram can be
represented in a ►
Ill Ill
tree format
PROBLEM Ill
(Mult iple answers Ill Ill
can be g iven to
one question Ill Ill
Ill
Ill

1 2 3 4
Clearly state the Ask 'how can Keep asking 'how' Prioritize & identify
problem to be this problem be until the ideas are the key ideas to be
solved. solved?'. specific enough. implemented.

HOW?
Energy Reduction
~
Example Draw energy
HOW?
consumption map
~
Improve energy Daily monitoring
and reporting
High energy monijoring
consumption Weekly energy
meeting
Change oven
bumer type
Purchase best
quote

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 IMPORTANCE URGENCY MATRIX
Eisenhower's Principle - Covey's Time Management Grid

An effective method for organizing

WHAT priorities based on the importance
and urgency of activities.

All activities are evaluated

in terms of importance
and urgency then placed V WHEN
in the fol lowing matrix:

Important Important
and but not
(.a'\
To prio ritize
urgent urgent ~ work activities

~
Not Nor
importan t important To prioritize
but urgent nor urgent personal activities
~

Avoid p rocrastination
Leave some time in and be p roactive Spend most of your
your schedule for time h ere
the un expected
activities

Do First Do Soon Helps you

achieve your
MANAGE FOCUS
p ersonal and
Arrange regular p rofessional
meetings t o avoid goals
interruptions
Delegate Drop
••
PUSH BACK AVOID
Limit the time

Learn to say NO
• I • you spend in
this quadrant

Professional rjllJ
~
EXA MPL ES (Y I Personal

Planning Exercise
Major deadlines Family calls
Prevention Family gathering
Customer calls A family breakfast
Coaching Daily planning
Customer emails The daily medicine
Networking Reading a book

Some meetings Junk emails Internet chatting Video games

Interruptions Gossiping Work-related calls Social media

Many emails Internet surfing Interruptions Excessive TV

1 2 3
Draw a four Sort you r activities Manage and focus what's
quadrant m at rix in t he appropriate on the first two quadrants,
HOW quadrant and pushback or drop
w hat's on the last two

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 IMPROVEMENT ROADMAP
An approach that is used to guide
WHAT through the implementation of a long-
term improvement j ou rney.

Applications
To summarize a strategic plan in a
WHERE
•
comprehensive and integrated manner.

In organizational development and

change management projects.

An improvement roadmap in its simplest

HOW format contains the following four sections ..

Current
Categories Millstones Metrics
conditions
Improvement
roadmaps shall
be simple to
create and
easy to
follow

.., ,, /
Improvement
categories
The di mensions
'
Current
conditions
Indicates the
Milestones and
targets
What you need
Performance
metrics
Allows to mo nitor
in which you starting point of to do in each performa nce and
want to set your the journey for improvement assess progress
improvement goals each category category and when against baseline

✓EXAMPLE
Where we Where we Where we
Improvement Where we are
want to be in want to be in want t o be in Metrics
categories now
6 months 12 months 18 months
-
Defect Breakdown
Spoilage rate
Spoilage awareness analysis Spoilage rate Spoilage
is too high
reduction program to system in less than 3% rate
(>8.0%)
all place
Internal audit Current audit Audit system I
results are practices covers all Audit score Audit
Internal audit
less than reviewed and functional above 90% score
60% improved areas

Action plans can then be used to help breaking down

big goals into smaller and workable activities.

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 KANO ANALYSIS
A method used to identify,
WHAT categorize and prioritize customer
needs.

These categories are then

considered when analyzing
potential opportunities for
improvement.

WHY
Helps categorizing the different features of a
product or service

Shows how customer needs are constantly

changing as time goes on

Kano Categories

1 2 3 4 5
Must be Performance Dellight Indifferent Reverse
features features (Satisfiers) features features features
·t
I
The basic features as
I The better the The presence of
determined by the performance, the more delighterswill lead to
customer. If they customers are satisfied. high satisfaction. They
are not present Companies often use are often unexpected,
or insufficient, these features to prioritize unspoken, and provided
customers will be their improvement to customers for
d issatisfied initiatives no extra money

The speed of • Getting a free mouse

product or answering a phone when purchasing a
service in a call center new laptop

Kano Diagram
Resu lts can be
SATISFIERS presented in a
Kano diagram,
which has two
axes: customer
MUST BE
satisfaction and
feature presence

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 MIND MAPPING
Visually organ1z1ng ideas, thoughts
and information around a single
WHAT topic or problem.

Sort out new ideas when brainstorming

► Sort out complex situations

Consolidate information from various sources

WHEN Support interviewing and studying

WHERE

Meetings and Brainstorming

planning sessions sessions

Workshops and
Individual effort
lectures

Main Main )
( point Topic point
HOW ~
Draw a circle in the middle of a
paper to represent the topic. .,- Sub
point
2
3
Draw lines out from the circle to
initiate the main points.

Add information to the main

points by creating more branches.
Main
point
~
r --
Basic Structure

A good practice is to show

associations by connecting ► Another good practice is to
use colors and add images,
the related items. icons, symbols & shapes.

Often drawn by hand, however, there are many

applications that allow the creation of mind maps.

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Observation and Gemba Walks

Observati is a data collection

WHAT method usea'to g ther specifiG
information about a proces~ o r
situation.

WHY
Accelerates problem
solving

Aligns leadership with Encourages learning and

the shop floor continuous imr.:1rovement

---

WHEN Measure actual performance against set targets

Understand the actual situation

Measure customer satisfaction

Acquire best practice and benchmark information

Types of Observation

PROCESS OBSERVATION FORM ...

Process observation forms
=r=oc=e=ss= =====: P,ocess map
:=P I
can be used to record the
observed data, interview
Observer _
responses, improvement
opportunities, and any
:=P
=u=r=
po=s=e====:::::I_Re_m
_a_r-ks_ _ _ ___, other useful information.
Total time _

► GEMBA refers to the actual place where value is created

A Gemba walk is going It aims to get closer to

to the actual place and the work and to
observing how the identify potential
work is performed. improvement areas.

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 PAIRED COMPARISON
A technique for evaluating a smal l
WHAT range of options by comparing
them against each other.

To select the alternative that

will be the most effective

To choose the most

,•
compelling problem to solve

WHEN
Professional ~ EXA M PL ES @Personal

Decid ing which skills and Deciding how or

experience are essential where to spend
when hiring people for your coming
a new role summer holidays

Paired Comparison is often used where there is little

objective data to base our decision on

1 2
• Identify the
alternatives to
Identify the
evaluation
List all alternatives on
the left hand column
HOW be evaluated criterion and on the top row of
the matrix (see below)

Compare then Count the Rank the options based

write in the cells number of times on their count, then
the option that each option has consider the options
better meets the been chosen with the highest
criterion ra nking

Paired Comparison Matrix

Option A Option B J Option C

Comparing
e - - - - - - -"""!"'!'- + Option 1 with
Option 2

•------~-+ Cel ls are blocked

out to e nsure
each comparison
is made only
Count
once

Rank

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 Pareto Analysis
A principle that helps to focus on
WHAT the most important matters to
obtain the maximum benefits.

In problem solving to focus

0
___ ,...
on the causes that contribu~e
most to a particu lar proble~
J WHEN
~-~

[] -
In project management
when prioritizing and
selecting projects.

WHY
~----------------------------------- ·------------------------------------'
''' Helps visualizing the Measure the impact
''' data to quickly of an improvement
'
know where to by comparing
, focus the efforts before and after
'
•------------------------------------

The Pareto principle states that 80% of the results come from 20% of the efforts

tJ
20% of twitter users are We may use 20% of our
responsible for 80% of household tools 80%
the tweets overall of the time

In the field of continuous improvement,

20% of the causes account for 80% of
t he effect in a fish bone diagram!

A Pareto Chart is a specialized type of bar chart that plots the

frequencies of categorical data
100%

Cumulative n
C
80% 3
frequency curve C
VI OJ
(J) .-+
u 60% <"
ct)
C
(J) "O
:::::l ct)
O" 40% .....
(")
,._
(J) ct)
LL :::::l
.-+
OJ
20% (Q
ct)

-
VI

0%
E C A D B F
The bars are arranged in order of frequency from left to right so that the
'vital few' categories can be clearly addressed on the left

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 PDCA Cycle
A four-step model t hat provides a
WHAT simple and struct ured way for
problem solving and continuous
improvement.

Used as the basis of Represents the logical Stands at the core of

improving the quality way of thinking we all quality systems
of products, services tend to fo llow when (TQM, ISO standards,
& processes. solving problems. & A3 thinking).

The POCA cycle is an easy to remember four logical sequenced steps ...

heck ct

Can be represented
in the form of a
diagram ... Implement : Identify
the best :' the problem/
Multiple iterations of the solution :' opportunity
PDCA cycle may be needed ------------------~------------------
to solve the problem Study the :' Test
permanently and reach the results and :' potential
ultimate future state. feedback : solutions

WHY ?
► Encourages the
methodical way of
problem solving.
►
Helps closing the Increases process
gap between knowledge from
planning & doing. solving problems &
finding solutions.

'
:' Plan for the Example
Impleme nt the : new product
new design acting : development: A common example
on the collected : & production often used to ill ustrate
feedback. : process. the PDCA cycle is when
---------------------~---------------------- a team is initiating a new
Analyze the :' Create a prototype,
product development.
collected data :' test it and co llect
to measure : data from the
customer :' custo mer.
C satisfaction. :'
~
~%

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 PEST ANALYSIS
A strategic and structured tool for
WHAT evaluating the external environment of
an organization.

PEST Stands For ...

Political Economic Social Technological

During
st rategic
& In project management
to increase awareness
analysis of the opportunities
and market and threats a project
WHEN research may have.

Political factors - focuses on Economic factors -

government policies and analyzes how the
regulations that may cause economy affects the
instability and uncertainty profitability of a business

Technological factors - looks at Social factors- considers

the technological characteristics the social and cultural
which brings new opportunities characteristics in which the
but also new challenges organization is operating

✓EXAMPLE This example uses a four-field matrix to

present tthe outcome of a PEST analysis
POLITI CA L ECO NOMIC

•
Changes
in the
labor law
•
Inconsistent
tax
regulations
•
Current
recession
0
High level
of GOP per
capital Q Opportunity

•
Increase in
health
consciousness
0
Increase in
foreign
population
0
Lower cost of
communication
0
Online
banking
accessibility
• Risk

SOCIAL TECHNOLOGICAL

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 PRIORITIZATION MATRIX
A decision -making tool t hat allows
WHAT to select t he most appropriate
alternat ive after evaluating mult iple
criteria.

Applications
Project selection
WHEN
~- ~
System and software selection

- Material and supplier selection

Personnel selection

--------- • ----------------------------------------------

Often used in problems solving and

process irnprovernent to select the
problem that needs to be resolved
and the solu tion that needs to be
implemented.

----------• ----------------------------------------------

Prioritization Matrix Template

Criteria 1 2 3 1
Identify the
alternatives
1

2
3
2 3
Weight the
Identify the cri teria in
Weighted scores
evaluation terms of their
criteria importance
Rank (optional)

5 4
Calculate the final weighted Rank the alternatives
scores then rank the against each criteria
weighted scores from best to worst

'V'v
1 Consider Do First
w __
Later
2
Score
>-
Consider

►
+ Never Do Later
Alternatives + COST -
The outcome of the analysis can If you have only two evaluation
be presented using a bar chart criteria, you can present the
to see the scores more clearly alternatives in a four-field matrix

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 PROCESS MAPPING
A graphical representation that
WHAT illustrates the flow of a business
process.

A way of rnaking sense of ~ L....----.._,■•

what happens or must L_:_~_J-+ ~ 1 ·
happen in a process. --

WHEN
Provides a mechanism for analyzing and
studying business processes.

WHY
Bringsclarityto complex processes

Identifies problem areas in order to improve

Provides inputs to other improvement tools

Helps communicate any changes on the process

Process maps are used to map existing

processes as well as to design new processes.

~ ~
i1ol
~ 40 ( 30 30

What you think What the What the process

the process is. process r eally is. should be.

Process inputs are the variables, the factors, and the sources of
variation in the process. They are transformed by the process into
outputs. They are often classified into the following categories:

1 2 3 4
Noise factors Standard factors Design factors The 'never thought
(uncontrollable) (SOPs) (can be controlled) of before' factors

✓EXAMPLE

New part not working (10%)

Notice the rework loop whiclh occurs when it is discovered

during testing that the installed part is non-functional

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 PROCESSSEQUENEECHART~~
A symbolic representation that
WHAT illustrates the sequence of activities
within a process.

To analyze a process to dete rmine which

steps add value and which do not.

Often used for sequential processes that

contain no or few decision points.

WHEN
WHY?
► Helps identifying ► Describes the process Helps tracking key
waste, long delays and accurately as it is metrics such as cycle
other non-value- typically drawn as the times, error rates, and
added activities. process is happening. distance travelled.

COMMON CATEGORIES AND SYMBOLS

These symbols have been accepted by many Lean practitioners and organizations.

O D V
OPERATION INSPECTION STORAGE TRANSPORT DELAY

Other categories and symbols can be used based as needed.

,
,----------------------------------------------------------------------------------------''
: The typical approach is to chart the present :
'
process on a chart, then the improvement
will be proposed on a second chart.
'

EXAM PLE Inspection of samples in a production line:

Take ToQC Inspect Enter results Wait report

samples station samples into spreadsheet to be printed

Time
MINS

15
Dist. .
MffiRS

X
..
■ .T Process description

Take samples
PROCESS
CHART
Presents the steps
4 90 X Tr.ansferto QC st ation
and the related
information in a form
21 X Inspect samples
of table. It allows
-
record ing further
15
I X · Ernter results in spreadshee
information about
I
--
each step such as
2 X Wait report to be printed
error rates, t ime and
distance.

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PROCESS YIELD MEASURES
Met rics which are used to measure
and understand the operat ional
WHAT process yield.

Enables operations to
understand their true process
yie ld in order to set realistic WHY
Benefits
improvement targets.

Common Process Yield Measures

1
First Time Yield
2
Final Yield
3
Th roughput Yield
4
Rolled Th roughput
(FTY) (FY) (TPY) Yield (RTY)

All process yie ld measures are

basically obtained by d ivid ing
the good product units by the
number of total units entered
HOW
Approach
the process (or process step).

Reworked units are often included in both m easu res (do not reflect· actual defect rates)

,\

First
Time Final
• • Yield Yield

=--L
Measured at Measu red at
any given - the end of
'
p rocess step
• •
Throughput
Rolled
Throughput
the p rocess

Yield Yield
I
,

Provide a better insight of defect and rework rates, and considered an accu rate
reflection of the p rocess performance

✓EXAMPLE A good practice is to use process mapping

as a guide in the process yield evaluation

100 ~ ~ 89
Inputs V V Outputs

F't = 89% RTY = 0.94 * 0.91 * 0.92 = 78.7%

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 PROJECT GHARIER
: A one-page document t hat summarizes
WHAT : t he fundament al informat ion of a
I project before it begins.

<:: Used to Ensure that the Project is: WHY ?

Business focused Have the necessary resources
•
Executed in a t imely manner Have the rig ht measures

Well scoped Have the necessary support

Q. Key Elements:
: I
' I

PROJECT TITLE iI
II

0 Business Case
Including problem and
goal statements
8 Project Team
A dedicated project
leader and tea m
I
I
I
I
II
I
members I
I
I

e
II
Project Scope
Defines what is involved
in the p roject and what
0 Voice of the
Customer
I
I
I
I
II
I
is not I
I
I
!

,
0 Project Metrics
Prima,y, financial, o r
both
0 Time Frame
The time requi red to
co mplete the project
i
I
!
.------ -- ------ -- ------ -- ------ -- ------ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- __ J
I
Milestones Highlight important dates. I
I
I

--------------------------------------------------------------------------------1
! s· Signing on the cha rte r seNes as a formal app roval !
: ignatures of the p roject and empowe rs the p roject leader. i
'•- -- -- -- -- -- -- -- ---- -- -- -- -- ---- -- -- -- -- - - -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --I
Project charters may include key stakeholders, risks and issues, project deliverables,
communication plan summary, and the required resources and f unding.

1 How to Prepare an Effective Project Charter:

A project charter should be customer

1 focused and addresses their specific needs. HOW
It should be clear and concise {preferably
2 one page).
It should contain realistic and achievable
3 objectives.
It should be developed as a collaborative
4 effort.
It should be dealt wit h as a live document
5 during the project lifetime.
It should be updated as the project
6 progresses.
Although project charters are short and brief, they often refer to more detailed documents

'\
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 PROJECT CLOSURE
An important part of the overall
WHAT project life-cycle which provides a
formal way of closing projects.

Al l project s are designed fo r a specific

period of time, so we need a way to
bring the project to its final state.

WHY
Validates proj ect goals have been accomplished

Ensures controls are in place and suffid ent

Formally releases th e team from th e project

Formally hands off the project to the process owner

Key Elements:
. ----------------------------------------------~-------·--------~-------~--------,
i PROJECT TITLE !
''' '
I'
i 1 Brief Description 2 Time Frame !
Includ ing the p roject Actual vs. est imated j
deliverables and results date of completion 1I
''
I
3 Benefits Obtained 4 Improvement in I
Hard savings as we ll as ''
performance I
soft savings
I
''
I
Best practices, 6 Ongoing work I
''
lessons learnt & and next steps I
shortcomings I
''
I
7 Controls in Audit checklists, visual contro ls, I
place to sustain stand ard work, SPC charts, ''
p reventive maintenance, etc. I
the benefits I
''
I
8 Signatures Sig natures from key stakeholders I
to confirm t he completion of the :
p roject. I
: ________________________________________________________________________________ :
Get the dig ital signatures of the key stakeholders or print out a co py of the project
closure and get their physical signatures.

PROJECT TITLE

I Description Benefits Key metrics

I Controls Delive rables Shortfa lls

SIGNATURES:

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 PUGH MATRIX
A scoring method used to compare
and select the best solution from a
WHAT set of alternative proposa ls.

Alternatives are
compared against
: ,---
,-- ---- -- -
--
a standard

The standard can be current solution that is already exist or a goal

Subjective opinions can be made

0
more objective

.IL does noi." ·requi"re; ►.fl great

WHY
Benefits
'• .,fr-~

amount of quantitative•data l ·•·

[ HOW ]
0 0
Select the Criteria W t. Standard 1 Identify the
baseline alternatives
solution
1
0
0 2 Indicate how
the baseline
Identify the 3 solution is
criteria to compared
be used for Score with each
comparing alternative:
Rank + (better)
• (worse)
O (same)

A Notice the strongest solution s, the one with

V the most pluses and the fewest minuses

Further solutions can be developed by mixing the positive

aspects of a number of solutions
I------------------------------------------------------------------------------------------

Deciding which product to develop

Deciding which vendor to select

Deciding which invest ment to take

WHEN Designing or redesigning processes

Applications

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 RACI MATRIX
A tool that shows how stakeholders
WHAT are assigned to different project and
process activities.

Business
~ • Project Change
Process
XX Management
Management
Management

WHY?
•
Provides a clear view of
what is expected from
each stakeholder.
Helps identifying who Reveals issues such as
should be approached too many responsible
at any given situation. persons.

RACI is an acronym for the four major participation types

Responsible Accountable Consulted Informed

Anyone who participate The one who delegates Anyone who can provide Anyone who should be
to accomplish a the work to those valuable information to notified about the
particular activity responsible complete the work activity

From the •
organizational
chart
El l3 D
From the work
breakdown
B a ma
a ma
structure or •
process map

13 El B
For each activity, identify the Responsible,
HOW Accountable, Consu lted and Informed .

It is recommended that each

activity receives only one of
the RACI categories at most. In
••••
some conditions, however, the
Responsible and Accountable ••
can be the same (small teams).

••••
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 RAID LOG
A project management tool
WHAT used to store several project
information in one place.
__ __ __ __ A central repository for all _______ _
RISKS, ASSUMPTIONS, ISSUES and DEPENDENCIES
'
·---- -~ --- -~ --- -~ --- -~ --- -~ -- - -~ --- -~ --- -~ --- -~ --- -~ --- -
Drives to take the necessary actions to ensure successful
implementation of the project.

RISKS
Something that wil l have a ASSUMPTIONS
negative impact on the project
Those factors that are taken for
if it happens, and can lead to
granted but cannot be
quality, delay or cost problems.
guaranteed and may impact the
result of the project.

ISSUES
Incidents that cause the project DEPENDENCIES
to become out of alignment
Those activities that need to
(risks that have already
start or be completed in order
occurred).
for the project to proceed
successfully.

WHV7 __ ..__,_

► Keeps your project organized and on track

► Makes the information easier to store and retrieve

► Useful document in regular project meetings and audits

► Gives confidence that the proj ect is under control

A good practice is to create the

log at the beginning of the project,
then regularly update it as needed
throug h regu lar project meetings
''
' I
HOW '
''
'

Description Priority Status

Issue xxxx Low Open
Issue XXX Negligible Closed
Assumpt ion xxxx Moderate Open
Risk XXX Critical Open
Assumption xxxx High Closed
Issue XXX Moderate Closed
Risk xxxx Hi h Oi::,en

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 SCATTER DIAGRAM
A way of showing whether two
WHAT variables are correlated or related
to each other.

WHEN
When analyzing the correlation between pairs of variables
and before conducting advanced statistical techniq ues to
support or reject hypotheses about the data.

WHY
Enables to identify the most significant factors
affecting the process.

Useful to verify that any change in the inp11t

variable
-,., .. '
wi II _·_have..an effect
- · ... , -_ _, - - •,·' -_
on the
_. -·- -·' -- -·.
output variable:_. =
'-.• .. _, - . .
. ... ~ .- - - .

HOW
It considers the relationship
between an input & an
► The input variable is placed on the Y output variables.
horizontal axis while the output
variable is placed on the vertical axis. X
► You may also study the relationship
between two input variables (or two
--- x1
output variables). XX : X

Scatter diagrams can indicate several types of correlation

X
Xxx x
X X
X XX
X
Positive correlation Negative correlation

Scatter diagrams The width of the

can also indicate scattered pattern
nonli near reflects the strength
relationships. of the relationship.

Be careful before concluding that there is a direct

Q cause-and-effect relati onship between the variables.

There might be a thiird factor that is affecting the
relationship.

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 SIPOC ANALYSIS
A simple tool t hat provides a high-
WHAT level view of the important elements
of a business process.

SIPOC is an acronym that stands

for Suppliers, Inputs, Process,
Outputs and Customers.
IID ma
- -
WHEN? . ---
► When investigating ► Duringthe define ► When designing new
a process to identify phase of DMAIC and processes.
its important the planning phase of
elements. Kaizen events.

WHY
Hel ps define the scope of work for
improvement project and initiatives.

Helps understand the relationships

between the inputs and outputs.

SIPOC analysis is a team effort, and the team shou ld

include people with enough knowledge of the process.

1
List the key high- Identify the Identify customers
level steps outputs of the who will receive
HOW process the outputs

4
Identify the inputs
5
Identify the
6
Verify recorded
requi red for the suppliers of the information
process process inputs

✓EXAMPLE
SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS
Employees Idea description Submit and Implemented Departments
Implement an Improvement
Evaluation panel Estimated Idea Employees
benefits & costs Appreciation
letter or reward HRteam
Evaluation
criteria HRRecords

Review and Appreciate /

Submit an Implement Report
~ evaluate the ~ ~ reward
idea the idea results
idea employ ee

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 STAKEHOLDER ANALYSIS
The process of identifying artQ_
WHAT analyzing the stakeho lders t hat are • -~
likely to affect or be affected by a ----
project or other organizational activity.

Applications

WHERE
Often used in project management, in confl ict resolution, and
in organizational transformat ion and change management.

Examples of Project - - Project tea m

Stakeholders ... --e Finance manager

Process owne r - - Procu rement tea m

People who wo rk on the p rocess HR manager

Customers of the process output

Supplie rs of the p rocess - - -! • Senior executives

One of the most widely used tools for analyzing

stakeholders is the power-interest matrix

► It classifies stakeholders High Understand Engage

into four groups according tovitext • •
to the power they hold and 0:::
whether they are interested L.U setters
in the project or not. $ ~========;::=======:
0 Crowd Vefevi ders
a.

l ow Monitor Consider
l ow INTEREST High

HOW

1
Brainstorm the
2 3 4 5
Sort them by Plot them on Identify gaps Create a plan
individuals and their powe r the power- between cu rrent to manage
groups who may and interest. interest m atrix. and desired ongoing
have a stake in involvement communication.
the p roject. levels.

Example
High Engage
WHY?
0:::
L.U
Adam CFO

Procu rement Sarni

Zaka ria
•
Mapping the stakeholders
$ :=========:::::=====~
0 Sa ra
on the power-interest matrix
a. helps managing them more
Technicians
Operators effectively throughout the
project or change effort.
Low Monitor Consider
Low INTEREST Hig h

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 SWOT ANALVSIS
A simple and structured planning tool
WHAT for reviewing and assessing the
position and health of an organizatio n.

SWOT Stands For . • •

~
o9 II
Strengths Weaknesses Opportunities Threats

WHY
Helps understanding where an organization
currently stands within the industry and market

WHEN?
► Before developing
or updating
• ► Duringthe
prioritization
► Whenevaluating
multiple strategic
strategic plans. process of projects. alternatives.

Strengths Weaknesses
The positive characteristics The internal deficiencies
that put the business at a which may decrease the
competitive advantage overall performance

Opportunities Threats
The external factors and Unfavorable external factors
events that the business that may interrupt the business
could exploit to its advantage from achieving its goals

✓EXAMPLE Results o,f a SWOT exercise are often

presented in t he form of a four-field matrix.
STRE NGTHS WEAKNESSES
Strong financial Inability to meet
position demand
Competent High turnover
workforce rate
OPPORTUNITI ES TH REATS
Anew Shortage of
technologies man ower
Growth of Rising
existing market materials rice

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 TIME VALUE MAP
A graphical representation of the
WHAT value-added and non-value-added
time in a process .

. WHEN WHY
When analyzing Better understand how
waste and non-value- much time wasted in a
added activities in process to maximize value
business processes. delivered to the customer.

VA ENVA NVA
Each activity with in a
process can be classified
into one of 3 categories

Increase the worth of Add no value, but Add no value,

a product O[ service are necessary due and not required
-from the customer's to the current for operational
perspective process settings reasons

Plot value-
HOW . . added activities
above the
timeline
Plot all process activities
as bars proportional to Plot non-value-
. . added activities
their time values along below the
a horizontal timeline. timeline

Some activities shou ld become

obvious candidates for eli mination
► The scale of the t imeline can either
be intervals of the cycle time or
or modification the actual t ime of a day

If)
If)

E E
::::i ::::i
.5: .5:
E E
0
0 ,-..

A t ime value map can also be represented in this format,

where all bars are parallel to each other.

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TRAFFIC LIGHT ASSESSMENT

A rating system fer; yaluating the

WHAT performance in relation to a goal.

Performance resu lts are

indicated using the real
t raffic light colors.
0 RED YELLOW GREEN

------- -------- --,'

''
Supports Decision Making ''
:' Performance resu lts are ind icated ?WHY
! using the real traffic light colors
'~----------------------------------------------------------- • Benefits

, / Performance and t rend reports

- •~ Customer satisfaction reports

- -- ~ Financial and marketing reports
Where?
Applications • - - ~ Quality and compliance audits

Risk management & safety audits

Results are expressed in Performance Management as:

A performance that is fa r below from

target

A performance that is a bit below from

target

1--_,. A pe rformance that is expected or

better than expected

Results are expressed in Project Management as:

-•-
■

♦
An activity that is incomplete
_J
Partially completed or
completed after due date ~

A Gantt Chart An activity that has been _J

Represents time completed on time or
du ration of activities ahead of time j

Other Uses

1 2 3 4
Communicating Ma rking material Assessing the skill Assessing a
production info. & inventory levels levels of employees particular idea

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VALUE STREAM MAPPING
A lean management technique for
WHAT understanding and analyzing the
flow of a business process.

WHEN
To identify and elim inate waste to make the
process as close to lean as possible.

WHY
Helps to understand the flow of value

Helps to see where waste and problems occur

Helps to establish a future state vision

Helps to plan the needed improvements

VSM Symbols Denote the various details

A•• ---+ 00 •
The type of symbols used depends on the industry and the type of work

. . . VSM Process . • •
Select t he
Value Stream
Draw Cu rrent
State Map
> Draw Future
State Map
> Develop and
Implement
Improvements

~XAMPLE A typical value strea m map for Manufacturing

Prod uction
control
;""-~.:::::::::::::-::::::::~---
Daily schedule

""l
Material
handling
Processing
A
II Packaging
--
FIFO
Shipping

Many companies use the Value-Added 31 %

Ratio (VAR) metric to measure the
performance of their end-to-end process.

VAR= Total Value-Added Time/ Total Lead Time

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 Visual Management
A business management approach
WHAT- that communicates important
information in a visual and real-
time manner.

A system of labels, signs, markings, Used by Lean organizations to detect

information d isplays, and visual guides abnormalities, reinforce standards,
instead of written instructions and maintain stability and safety

WHY?_ ~----
Improves workplace
• Improves compliance Increases the
communication and to health, safety and awareness of error
collaboration other requirements conditions and waste

Types of Visual Controls

~
INFORMATION
g
INSTRUCTION
®
STATUS
Visualsto show identity, Visuals to communicate Visualsto displaythe
directions, strategy, SOPs, work-related info., status of processes,
customer expectations and workplace projects, production,
and compliance organization & productivity and
requirements maintenance activities performance
Safety Visuals Work instructions Performance metrics
Signage Standard work Andon lights
Marking SS Kaizen progress
Posters TPM Best practices

EXAMPLE FROM A PRODUCTION ENVIRONMENT

1 Safety sign
2 Andon lights
3 Floor marking
4 Machine identity
5 Visual instructions
6 Gauge marking

► Visual management can also ► It is very common to conduct

be useful for support functions Kaizen events where the focus
in the production environment, is to enhance the visuality of a
and in the service sector. specific process or work area.

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 Why-Why Diagram
-~
A problem-solving tool that is used to
WHAT discover why a problem occurs when
there are mu ltiple factors to consider.

WHEN
To identify the potential To identify the potential
causes of a problem In causes that may lead to
order to solve it. future problems.

WHY
Provides useful information for
later problem - solving analyses.

HOW
WHY?A
rm
■
The why-why
diagram can be Ill
represented in a Ill
tree format or a Ill
fishbone format ► PROBLEM Ill
Ill Ill
Multiple causes
can be given to Ill Ill
one question
Ill
WHY?v

1 2 3 4 5
Clearly state Ask 'Why Write as Keep asking Why Plan for the
the problem the problem many causes until you identify corrective
to be solved occurs?' as possible the root causes actions

EXAMPLE
Y?

r
Poor sales
High price
High manufacturing
cost

Hint: Potential causes can be organized into categories

to provide better focus and easier reference.

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